Rectifying a penny wise, dollar foolish mistake?

[aaron3]

What is the name of your state? California

I previously posted [url]http://forum.freeadvice.com/showthread.php?t=406921[/url] that in settling my father's estate I mistakenly deposited some assets that were to go to me directly, into a trust account that he also bequeathed me. My accountant said to call the mistake a loan and transfer the assets into my personal account ASAP.

I noticed the ex-dividend date approaching on a couple of the mistakenly deposited assets so, I assumed these would be of top priority to transfer in order to prevent the earnings from also going into the mistaken account. So without thinking of the consequences, I immediately transferred these assets. Then it dawned on me that I just hit myself with a tax increase as the dividends would have been considered qualified had I left them were they were until after the ex-dividend date. How do I tell the IRS that I owned the stocks all along, that I had loaned them to the trust and that the dividends should be considered qualified? I owned the stocks "for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date".

Thank you!

[LdiJ]

Originally Posted by aaron3

What is the name of your state? California

I previously posted [url]http://forum.freeadvice.com/showthread.php?t=406921[/url] that in settling my father's estate I mistakenly deposited some assets that were to go to me directly, into a trust account that he also bequeathed me. My accountant said to call the mistake a loan and transfer the assets into my personal account ASAP.

I noticed the ex-dividend date approaching on a couple of the mistakenly deposited assets so, I assumed these would be of top priority to transfer in order to prevent the earnings from also going into the mistaken account. So without thinking of the consequences, I immediately transferred these assets. Then it dawned on me that I just hit myself with a tax increase as the dividends would have been considered qualified had I left them were they were until after the ex-dividend date. How do I tell the IRS that I owned the stocks all along, that I had loaned them to the trust and that the dividends should be considered qualified? I owned the stocks "for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date".

Thank you!

So, when you assumed that it was top priority to remove the assets with dividends coming up, did you step back, and consult the accountant again, FIRST. When you spoke to the accountant regarding the assets mistakenly deposited into the trust, did you give the accountant the impression that the assets were cash?...because that's certainly the impression you gave us earlier. You stated that you deposited assets, you did not state that you transferred an account or accounts to the trust.

If you want good advice, you need to give explicit details...particularly to the people you are paying to advise you.

Some one else here may know the answer to your question off the top of their head. I don't, and I am not willing/able at this time to do the necessary research.

[aaron3]

...did you give the accountant the impression that the assets were cash?...because that's certainly the impression you gave us earlier. You stated that you deposited assets, you did not state that you transferred an account or accounts to the trust.

If you want good advice, you need to give explicit details...particularly to the people you are paying to advise you.

Some one else here may know the answer to your question off the top of their head. I don't, and I am not willing/able at this time to do the necessary research.

I admit and am sorry that I provided incomplete information. I originally used the term 'money' as that was what was primarily transferred. And the deposit was actually the transfer of assets between different accounts. I was trying to present the problem as simply as possible to make it easiest for you and others to be able to answer. But as I am admittedly naive and didn't realize that there would be complications, said complications are necessitating that more details be provided and, as I had feared, would limit the responses I'd receive due to the effort required in answering a more complicated problem.

Thank you!

[LdiJ]

Originally Posted by aaron3

I admit and am sorry that I provided incomplete information. I originally used the term 'money' as that was what was primarily transferred. And the deposit was actually the transfer of assets between different accounts. I was trying to present the problem as simply as possible to make it easiest for you and others to be able to answer. But as I am admittedly naive and didn't realize that there would be complications, said complications are necessitating that more details be provided and, as I had feared, would limit the responses I'd receive due to the effort required in answering a more complicated problem.

Thank you!

What you don't grasp is that the details are critical. You keep blaming your naivete, but we have made it clear to you that you need to get well informed advice BEFORE you do something. You keep demonstrating that you aren't smart enough to pay attention to that advice.

You state repeatedly that you want to "learn" but you make it clear repeatedly that you don't understand enough to learn in this setting....or even to learn from a mentor/professional.

Its not a "game"....its not trying to "beat the man". Its being smart and knowing when you are over your head.

I am not going to respond to any more of your threads. I am not willing to take on a paying client that would make me beat my head against the wall as much as you do. I am NOT going to spend my volunteer time here beating my head against the wall.

[aaron3]

Thank you for your frank comments. I fully accept them with a gulp and agree with you that I should have sought advice before acting. However, the fact is I did act first and after realizing that I may have created a problem, my first thought was to seek help from this forum. I did not come here to waste your time or to challenge or to frustrate you. I'm sorry you took my questions that way. I do know that I'm in over my head and that's why I asked for help.

I knew I'd be pushing my luck in asking you and others to answer another question after the comments saying that I wouldn't be wanted as a client. I was surprised you continued to reply, let alone give lengthy and meaningful replies. I guess this last question was the straw that broke the camel's back. Sorry for causing you to lose it.

[FlyingRon]

You are a fraud both in your financial dealings and with your postings with us.
You also abuse proverbs with an attempt to sucker other posters into reading your posts.

Your story changes with each post. You're not naive, or uneducated, you are just a liar.
You're going to need a lawyer well versed in trust matters and tax fraud to unravel the mess y you've made here.

[aaron3]

Your unfriendly dialog is unwarranted. I am neither a fraud nor a liar. Nor do you know what I need. Nor was it my intention to "sucker you" into reading this post.

You might want to consider that alienating those who have previously contributed value to this forum might cause them to stop contributing.

Here's another contribution, hopefully another visitor will find it of value:
For anyone who happens upon this thread, I called the IRS and was told that it doesn't care how the dividends get reported, all it cares about is that the correct taxes get paid. I then called the brokerage house and was given the solution - one that the "big wigs" on this forum couldn't provide (to paraphrase "would take too much time to research [for free]") - is to have the journaling dept code the transfers with back-dated "as of dates" so that the dividends can be considered eligible as "qualified".

[FlyingRon]

Originally Posted by aaron3

You might want to consider that alienating those who have previously contributed value to this forum might cause them to stop contributing.

The only person I'm likely to alienate is you, and it doesn't seem to be working. Ldij and most of the other regular posters here I am on quite good terms on.

But that doesn't change the fact that you twice changed your story in the previous thread about what the nature of the transfer was and why you did it and now you show up in this thread with a completely different story.

[Dandy Don]

Was an estate tax return prepared?

You should be consulting with a local CPA or tax return professional to get your questions answered by having that person look at exactly what happened. There may or may not be tax consequences that you may not have to worry about rectifying unless and until the IRS notifies you.